The new Household Financial Conditions Index found 15.6 per cent of households spent some of their savings last month, the highest level since the index started in 1994.

“The proportion of households drawing on their savings in March reached levels we’ve never seen before in the near 20 years the survey has been running,” St. George retail banking general manager Andy Fell says.

“The findings show that we’re at a potential turning point.”

Hans Kunnen, a St.George senior economist, says many people “saved to the max” when the GFC hit, and put the brakes on household spending.

“People don’t feel as threatened. They have reached their savings goals and now money is being spent,” he says.

The research also found more households increasing their debt, with those with a mortgage rising 3.1 per cent in three months to 40.2 per cent of households. However, those with credit card debt declined 3.7 per cent to 31.6 per cent of households.

“I don’t see it as a new credit splurge – it’s a slight easing of the purse strings,” Kunnen says.

Forecasting group Foreseechange’s managing director, Charlie Nelson, says his firm’s research is consistent with the new findings.

“A big percentage of people were telling us in November that they were on the verge of reaching their savings goal,” he says. “I think we are seeing people drawing down on their savings because they have saved enough.”

However, Treasurer Joe Hockey’s warning that “nobody will be spared” in a tough Federal Budget next month clouds the outlook.

Nelson says people are spending more on overseas holidays travel, new cars and household goods, while, with department store sales growth up from 2 per cent to 3 per cent a year, but not with their credit cards.

“The growth rate of balances on credit cards has come down to zero,” he says.Myer spokeswoman says Easter is one of the year’s busiest trading periods, “in the midst of our mid-season sale”.

MyBudget founder and director Tammy May says it is important to plan all of your spending. “More challenging is sticking to it and steering away from impulse or ‘just in case’ purchases,” she says.

“Using cash or debit cards certainly helps in this regard as it’s just too easy to overspend with plastic.”

Impact Financial Coaching director Allan Ward says people’s confidence may be up because of rising share prices, property values and superannuation, but should remember the good times may not last forever.

“But are you spending on the right things or can you delay that gratification and spend it on something that’s more important to you?” he says.

“Our minds are good at tricking us – we look at what recently happened and think that will continue to happen in the future,” he says.

Failing to spend can also be a bad idea, Ward says.

“There is nothing sadder than someone in their 80s who has a lot of money saved up but never really enjoyed it. That’s not how we should live our lives.”

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